As the reign of remote working continues, more and more young Brits are heading overseas to live as ‘digital nomads’ or find better opportunities elsewhere.
So much so that 87,000 British nationals aged 16-24 reportedly left the UK in 2025, with many citing the cost of living as a key factor behind their decision.
While a large number of British expats have headed for the sunny shores of luxurious destinations such as Dubai and Sydney, there are many budget-friendly options becoming popular.
The cheapest countries for Gen Z expats have now been revealed, based on wage affordability, safety, healthcare quality, environmental factors, equality and connectivity.
The top spot? Luxembourg, a small European country surrounded by Belgium, France and Germany.
Luxembourg was found to be the most affordable country for Gen Z expats, with living expenses accounting for just 15.5 per cent of average wages.
That’s a notably lower share than in Mexico (40.2 per cent) or Greece (33.5 per cent), which are the least affordable.
Beyond affordability, Luxembourg also scores highly for quality of life, offering strong digital infrastructure, excellent healthcare standards, and a solid Global Peace Index.
Luxembourg city is known for its great quality of life, perfect for young workers
Surprisingly, the United States comes in second place. Here, living costs account for 17 per cent of average wages, supported by high earning potential and access to one of the world’s most developed job markets.
The US also leads in digital connectivity, boasting some of the fastest broadband speeds, making it particularly appealing for remote workers.
Belgium ranks third, with living costs 17.3 per cent of average wages, combining stable incomes with affordable living costs.
Its central location in Europe, reliable public transport, and relatively strong LGBT equality score make it especially attractive to young expats seeking affordability.
In fourth and fifth place are Australia and Canada, both popular expat destinations.
Spain ranks in sixth place, with living expenses accounting for just 18 per cent of average wages.
In seventh and eight place are Slovenia and the Netherlands.
Rounding out the top 10 are New Zealand and Lithuania.
The digital connectivity and work opportunities in the US bring it into second place
The most affordable countries for Gen Z living abroad
1. Luxembourg
2. United States
3. Belgium
4. Australia
5. Canada
6. Spain
7. Slovenia
8. Netherlands
9. New Zealand
10. Lithuania
The study was carried out by international health insurance specialists William Russelll.
It comes after it was recently revealed more and more young people are seeking ‘micro-retirement’ and a chance to travel without having to wait for the traditional retirement age.
Workers aged 18 to 24 were the most likely to take time off as a result of stress (35 per cent), compared to just 10 per cent of workers aged 55 and over.
Bangkok in Thailaind was found to be one of the most popular cities for micro-retirements.
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The cheapest countries for Gen Z expats revealed
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